EUR/JPY returns to 124.91

The resistance at 128.65/127.94 has forced the pair to step back after the initial test. This pull-back is not likely to extend beyond 124.91, the weekly pivot point. However, we cannot fully rule out a possibility of a deeper retracement, down to 123.29/122.43, which is the rising support line from Nov 13 that for now secures the bullish outlook.

The difference between the amounts of bullish and bearish traders has narrowed even further. At the moment 39% of opened positions are long and a majority (61%) of them are short. Concerning orders placed on the currency pair, 61% of them are to buy the Euro and 39% are to sell it against the Japanese Yen.